Great result. Would have bought some a few days were I not already facing liquidity issues from too many deals I couldn't refuse!
Printable View
Great result. Would have bought some a few days were I not already facing liquidity issues from too many deals I couldn't refuse!
HLG activity generated $35.3m in cash
Spent (invested) a net $8.3m on store fitouts etc (capex)
That left $27.0m free cash
Giving $26.2m back to shareholders
That’s the way it should work
No debt, cash in the bank means a lot. Some say that’s lazy capital management but I reckon it’s a good situation. And some would say that the $88m of lease obligations is a form of capital anyway.
I am not sure what I call lease obligations?
They are a liability that is ongoing and must be met.
All well and good,or acceptable, while the retailer is trading well, and is profitable.
But as an investors we must be well aware of the liability, should the retailer lose favour with its customers.
Seeing the growing online success HLG are achieving, does add to the strength of the business,making them less dependant on expensive store rents.
I do note HLG have great retail sites,although they pay through the nose for mall sites.
Always good seeing HLG closing stores, and recycling the capital into new better located stores.
Here's a few more numbers to add your lot Winner. @$5.85 the divi is 7.5% after tax.(that's 10.4%gross) . A PE of 12.6 which is historically about right for HLG.
i reckon the Pe should actually rise to about 13.5 -14.5 now given the evidential growth with Aussy and online. That makes the share price about $6.20-$6.65 . But to temper that, the huge lift in profit last year included a bumper summer season so I won't be rushing out Monday add some more. Besides I'd have to sell some OCA first, sacre-Bleu.
Very impressive growth in online sales. Excellent result, superb stock turn, solid sales growth since balance date, great dividend. My sense is all the preceding is already substantively built into the current price.....whereas it was great buying 2 years ago at $2.70 :D
Hmmmm.... Will SP drop further?